Limited Scope Audit of the Credit Enhancement Reserve Funds fo

1991LIMITED SCOPE AUDIT OF THE CREDIT ENHANCEMENTRESERVE FUNDS FOR SECURITIZATION TRANSACTIONS-16 and 1992-05Audit Report No. 99-027July 6, 1999OFFICE OF AUDITSOFFICE OF INSPECTOR GENERAL WJuly 6, 1999TO:FROM:SUBJECT:Securitization Transactions 1991-16 and 1992-05(Audit Report No. 99-027)1BACKGROUND 1that date was transferred to the Federal Deposit Insurance Corporation in accordance with the RTC Completion Act.The RTC’s legislatively mandated sunset date was December 31, 1995. Responsibility for all RTC-related work as of third-party investors. certificates to party. A trust was created to acquire the RTC-owned mortgages and to issue the pass-throughsecuritizations) signed a pooling and servicing agreement (PSA) describing the obligations of eachAt each securitization closing, the trustee, the servicer, and the seller (the RTC for the two selectedthis area because the FDIC maintains a significant risk and financial interest in these transactions.The OIG has completed other audits of securitizations and will continue to focus audit effort inNovember 1998, the remaining collateral balance of the SFR securitizations totaled $4.1 billion.44 were collateralized by SFR mortgage loans with a book value of $25.3 billion. As ofprincipal balances (i.e., book value) of approximately $43.8 billion. Of these 74 securitizations,(FDIC) issued 74 mortgage-backed security transactions (securitizations) with ...